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Regulatory dark matter expands power of federal government

By Eric Boehm / December 11, 2015 /
 
 When the White House abruptly decided in June 2013 to postpone a major element of the Affordable Care Act’s rollout, the announcement came in the form of a blog post.

There was no act of Congress, no major rule-making from a federal agency or department. Nothing except the president’s pen — or in this case, his keyboard — was necessary to postpone the law’s mandate that all American businesses provide health insurance for their employees.

The move sent shockwaves through the media, and raised questions about whether the White House had the legal authority to rewrite major pieces of legislation and regulatory policy on the fly.

Perhaps that move shouldn’t have been so surprising. On a smaller scale, this sort of thing happens almost every day.

CAN’T SEE IT, BUT ITS THERE: In the world of astrophysics, dark matter is a theoretical type of matter that cannot be seen or otherwise detected with telescopes, but is believed to make up the majority of all substance in the universe. In much the same way, regulatory dark matter is difficult to detect or track, but accounts for the majority of all federal rules and regs.
“Dark matter has completely changed the game,” Clyde Wayne Crews, a vice president of policy for the Competitive Enterprise Institute, told Watchdog Radio. “When you start digging into it, you see that Congress really has no idea what the scope of this stuff is.”

Crews has spent years tracking federal regulations, but his most recent undertaking is an attempt to understand the scope of the dark matter regulatory state. The results are published in a new report published this week.

The numbers are staggering. There have been 777 executive orders issued since 1994, according to the Federal Register.

By comparison, there have been more than 500,000 informal “public notices” issued by regulatory agencies of the federal government during the same period of time.

In the world of astrophysics, dark matter is a theoretical type of matter that cannot be seen or otherwise detected with telescopes, but is believed to make up the majority of all substance in the universe. In much the same way, regulatory dark matter is difficult to detect or track, but accounts for the majority of all federal rules and regs.

Here’s how to understand what regulatory “dark matter” actually looks like, and how it comes into existence.

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First, Congress passes a law like the ACA. Within that law, Congress designates regulatory powers to certain federal agencies.

For example, the ACA included a new requirement that chain restaurants provide customers with nutritional information on menus. Congress wrote the broad parameters of that requirement into the text of the ACA, but left the details up to the Food and Drug Administration.

READ MORE: Dispute menu regulations, Americans are still getting fatter

Then there’s things like the presidential decision in June 2013 to postpone the individual mandate for one full year. That’s regulatory dark matter, completely disconnected from the traditional lawmaking process.

In making the decision to postpone the employer mandate, the administration cited “the complexity of the requirements and the need for more time to implement them effectively.”

But it doesn’t take the authority of the White House to create dark matter regulations. There are 438 federal agencies with the ability to make rules, and they can really crank them out. More than 2,600 have been issued just this year, Crews says.

Under the Administrative Procedure Act of 1946, Congress established the process of public notice for proposed rulemaking, including the opportunity for public input and a 30-day period before rules becomes effective. But the APA’s requirement of publishing a notice of proposed rulemaking and allowing public comment does not apply to “interpretative rules, general statements of policy, or rules of agency organization, procedure, or practice.”

In other words, dark matter regulations are exempt from almost any oversight and have little public accountability. They are the product of “pen and phone” authority, Crews says.

“It’s a real breakdown in representative democracy, in my view,” he said.

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